'General Election result - where now for construction?' - PBC Today

Kim Vernau, CEO of BLP Insurance, examines the impact of the recent General Election result and what it means for the construction industry. Having successfully snatched defeat from the jaws of victory, Theresa May’s government has now recommenced the business of Parliament on a “confidence and supply” basis with the Democratic Unionist Party (DUP).

As the election result became increasingly apparent on Friday 9 June, there was a two per cent drop in sterling against the dollar and the euro early in the morning. By the end of the day, sterling had rallied and the FTSE 100 was up. House builder share prices were adversely impacted as questions were raised about the skills shortage in the construction sector, delays to Brexit negotiations and the loss of yet another Housing Minister, who had been viewed favourably by the sector. While it’s true the markets hate surprises, there are some positives that the construction industry can take away from the recent vote.

At the centre of this is that the fundamentals of the British political and economic system have not changed. Strong liquidity, stable governance requirements, transparency and clear title are all critical requirements in the “safe haven” status that the UK has traditionally held. These aspects will continue to be a focus for overseas investors in the UK property market.